Ritchie Bros. Posts Strong Third Quarter Auction Income
Ritchie Bros. Auctioneers generated $128.9 million of revenue in the third quarter compared to $109.3 million in the third quarter of 2016, an 18-percent increase. During the first nine months of 2016, Ritchie Bros. generated $419.6 million in revenue compared to $380.4 million for the first nine months of 2015, a 10.3-percent hike.
In an eventful quarter, Ritchie Bros. acquired IronPlanet for $758.5 million, and entered into a strategic alliance with Caterpillar to become Caterpillar’s global partner for live onsite and online auctions with respect to used Caterpillar equipment and will complement the manufacturer’s existing dealer channels. During the third quarter, Ritchie Bros. conducted 53 unreserved industrial auctions in 13 countries in North America, Central America, Europe, the Middle East, Australia and Asia.
Also, Ritchie Bros. EquipmentOne arm sold more than $42.1 million of equipment and other assets on behalf of customers, a 5-percent year-over-year hike.
“We were pleased with the overall growth of the company in Q3 2016, with GAP (gross auction proceeds) up 12 percent and revenues up 18 percent versus the same quarter last year,” said Ravi Saligram, CEO of Ritchie Bros. “The company continues to be a strong cash generator and has delivered $163 million in operating cash flow during the first nine months of the year. Core auction performance was strong this quarter due to double digit GAP growth, stabilized pricing, excellent performance of underwritten contracts and record auctions in both the U.S. and Canada.
“With our strong core auction business and the acquisition of IronPlanet, we are excited about our journey to becoming a unique multi-channel equipment disposition company, providing unprecedented choice to customers through both onsite and online sales solutions.”
Saligram added the company has filed its anti-trust submission with the Department of Justice in connection with the acquisition and is beginning integration planning “in earnest.”
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.